In the Gaza Strip, a vital component of the economy—cash—is alarmingly scarce amidst the ongoing turmoil. The lack of operational banks and ATMs has pushed many to rely on a network of cash brokers, who now charge hefty commissions of nearly 40 percent. Ayman Al-Dahdouh from Gaza City described the situation as dire, emphasizing the economic suffocation faced by residents. Inflation, unemployment, and dwindling savings compound the issue, forcing families to sell belongings to afford basic necessities.
The Israeli shekels in circulation are increasingly rejected due to their worn condition, as Israel has ceased the supply of fresh banknotes. The current economic strain is largely attributed to Israel’s decision to halt cash flow into Gaza to hinder Hamas from acquiring weapons and funding operations. This decision coincided with affluent families withdrawing funds and fleeing the region, heightening concerns over Gaza’s financial stability. Consequently, the rate charged by cash brokers has surged from about 5 percent to current staggering levels.
Brokers now facilitate electronic cash transfers, but with significant reductions, sometimes exceeding half of the transferred amount. Inflation in Gaza rose dramatically by 230 percent in 2024 before a ceasefire provided temporary relief. However, tensions quickly reignited, and the financial strain returned. The staggering unemployment rates, reaching 80 percent as of 2024, exacerbate the problem, with wages often requiring a cumbersome conversion to cash for essential purchases.
A recent trend has emerged where some businesses have started accepting patched-up banknotes, though trading is impeded by the poor condition of most currency in circulation. Consequently, a new industry focused on banknote repairs has arisen, though even restored notes fail to guarantee widespread acceptance. Gaza’s situation remains precarious as the ongoing conflict between Israel and Hamas looms over potential resolutions. Amid attempts for a 60-day truce, Israel insists on Hamas disarmament as a prerequisite for peace talks.
The call for sustained negotiations with terms unfavorable to Hamas continues, with Israel threatening further military actions should diplomacy fail. In the UK, scrutiny falls on Boston Consulting Group (BCG) regarding their Gaza-related projects. BCG is under investigation for its role in preparing models that estimate relocation costs for Palestinians and establishing an aid operation led by Israel. This comes as the number of Palestinian casualties increases amid ongoing aid distribution challenges, sparking international condemnation.
In Sudan, civil tensions continue to result in tragic deaths, highlighted by a recent attack in El-Fasher resulting in civilian casualties. The region suffers immense humanitarian distress, exacerbated by limited access to basic resources and a rising displacement crisis. In Geneva, a strong defense emerges for the UN expert on Palestinian rights after the US sanctions her over alleged biased criticism of Israel. The move underscores growing tensions about international interventions in Israeli-Palestinian affairs.
And notably, Sara Netanyahu’s active role accompanying Israel’s Prime Minister, her husband, demonstrates her influential yet controversial presence within Israeli political dynamics. Her involvement, often scrutinized, sheds light on familial influence over state matters, highlighting the complexity of governance in the embattled nation.
